TDS for deductee type Company ( Resident),Artificial judicial persons,Association of persons,Body of individuals,CO-Operative society.
Section Nature of Deduction Excemption Limit Single Bill Value Limit TDS % Surcharge % Surcharge Excemption Limit Education Cess % Secondary Edu cess
194H Commision or Brockerage 2500 0 10 0 0 0 0
194J Fees for Professional & Techenical Service 20000 0 10 0 0 0 0
193 Interest on securities 2500 0 10 0 0 0 0
194A Interest otherthan interest on securities 5000 0 10 0 0 0 0
194A Interest from a banking company 10000 0 10 0 0 0 0
194C Payment to contractors otherthan advertisement 50000 20000 2 0 0 0 0
194C Advertisement Contractors 20000 0 2 0 0 0 0
194C Payment to sub contractors 50000 20000 2 0 0 0 0
194I Rent of Land, building or furniture 120000 0 10 0 0 0 0
194I Rent of Plant , machinery or equipment 120000 0 2 0 0 0 0
TDS for deductee type Partnership firm ie, Deduction against payments made to Partnership firm
In case of parntership firm there is a difference in excemption limit for sec 194c , the rset of the things are same as first table.
Section Nature of Deduction Excemption Limit Single Bill Value Limit TDS % Surcharge % Surcharge Excemption Limit Education Cess % Secondary Edu cess
194C Payment to contractors otherthan advertisement 20000 20000 2 0 0 0 0
194C Advertisement Contractors 20000 0 2 0 0 0 0
194C Payment to sub contractors 50000 20000 2 0 0 0 0
TDS for deductee type Local Authority ie, Deduction against payments made to Local authority
In case of Local Authority there is a difference in excemption limit for section 194c , the rest of the things are same as first table.
Section Nature of Deduction Excemption Limit Single Bill Value Limit TDS % Surcharge % Surcharge Excemption Limit Education Cess % Secondary Edu cess
194C Payment to contractors otherthan advertisement 50000 20000 2 0 0 0 0
194C Advertisement Contractors 20000 0 2 0 0 0 0
194C Payment to sub contractors 20000 20000 2 0 0 0 0
TDS for deductee type Individual/HUFIe, Deduction against payments made to Individual/HUF
In case of individual /HUF there is a differemce in tds rate and excemption limit under section 194c, rest of the things are same as 1st table for individual /HUF
Section Nature of Deduction Excemption Limit Single Bill Value Limit TDS % Surcharge % Surcharge Excemption Limit Education Cess % Secondary Edu cess
194C Payment to contractors otherthan advertisement 50000 20000 1 0 0 0 0
194C Advertisement Contractors 20000 0 1 0 0 0 0
194C Payment to sub contractors 20000 20000 1 0 0 0 0
When is surcharge and cess is applicable as per new tds rates
1. Payment made to a non resident company below 1 crore cess is applicable.
2. Payment made to a non resident company above 1 crore surcharge @ 2.5 % cess 2+1 is applicable.
3. .Cess is applicable for payment made to non resident non corporate.
4. Cess is applicable for salary payment to resident , non corporate.
Due date of Payments of TDS
Tax deducted , should be paid to government within seven days from the last day of the month of deduction.Where as the amount deducted for the month of march should be paid on or before the due date of filing income tax return.
Consequence of failure in deducting tax from source .
The failure in deduction of tax from source will lead to dis-allowance of claim of entire expenditure pertaining to TDS and its addition to total income as provided u/s.40(a)(ia) of the income tax Act along with the interest and penalty as per IT act 1961.
Tuesday, August 17, 2010
Friday, March 19, 2010
TCS (Tax Collected at Source)
TCS (Tax Collected at Source)
Introduction
TCS is the Tax Collected at Source by the seller (collector) from the buyer/ lessee (collectee/ payee). The goods are as specified under section 206C of the Income Tax Act, 1961.
If the purchase value of goods is X, the amount payable by the buyer is X+Y, where Y is the value of tax at source. The seller deposits Y (tax collected at source) at any designated branch of banks authorized to receive the payment.
The seller, lessor or licensor, is responsible for the collection of tax from the buyer, lessee or licensee. The tax is collected for sale of goods, on transactions, receipt of amount from the buyer in cash or issue of cheque, draft or any other mode, whichever is earlier.
Classification of Seller for TCS
Under TCS, a seller is defined as any of the following:
o Central Government
o State Government
o Any Local Authority
o Any Statutory Corporation or Authority
o Any Company
o Any Partnership Firm
o Any Co-operative Society
o Any individual/HUF whose total sales or gross receipts exceed the prescribed monetary limits as specified under section 44AB during the previous year
Classification of Buyer for TCS
A buyer is classified as a person who obtains goods or the right to receive goods in any sale, auction, tender or any other mode. The following are not included:
o Public Sector Companies
o Central Government
o State Government
o Embassy of High Commission, Consulate and other Trade Representation of a Foreign State
o Any Club, such as social clubs, sports clubs and the like
Goods and Transactions classified under TCS
Goods and transactions classified under TCS are listed below:
o Alcoholic liquor for human consumption including Indian Made Foreign Liquor (IMFL)
o Tendu leaves
o Timber obtained under a forest lease
o Timber obtained by any mode other than under a forest lease
o Any other forest produce not being Timber or Tendu
o Scrap (Scrap means waste and scrap from the manufacture or mechanical working of materials which is usable as such because of breakage, cutting up, wear and tear and other reasons)
o Licensing or leasing of Parking Lot, Toll Plaza
o Mining and quarrying
Certificate of TCS
The certificate of collection of tax at source has to be submitted in Form No-27D by persons collecting tax at source within a week from the last day of the month in which the tax was collected.
If there is more than one certificate to be issued to a buyer for tax collected at source with respect to the period ending September 30 and March 31 in the financial year, then the person collecting the tax on request from the buyer can issue a consolidated certificate within one month from the end of such period.
If an issued TCS certificate is lost, the person collecting tax at source may issue a duplicate certificate on plain paper, with necessary details as contained in Form-27D.
The Assessing Officer (AO), before giving credit for the tax collected at source on the basis of the duplicate certificate, has to get the payment certified and obtain an Indemnity Bond from the assessee.
TCS Exemptions
TCS can be totally exempted or fixed at a lower rate under some circumstances.
Total Exemption: No TCS Collection
A declaration by the buyer in Form Number 27C (in duplicate) has to be made for total exemption. The declaration is if the goods listed are to be used for the purpose of manufacturing or processing and not trading. A copy of the declaration has to be given to the person collecting tax.
The person collecting this declaration form has to submit the copy to the authorities concerned on or before the seventh day of the following month.
Lower Rate of TCS
The buyer (Collectee) can apply to the Assessing Officer (AO) for a lower rate, using Form No.13, subject to the condition that the AO is convinced that the total income of the buyer (Collectee) justifies the lower rate. The AO may issue a certificate, specifying the rate of collection.
Payment of TCS to the Government
The tax collected is to be paid to the Central Government within one week of the last day of the month in which the tax was collected. This payment is made in any branch of Reserve Bank of India (RBI), State Bank of India (SBI), or any other authorised bank. The payment is made accompanied by income tax challan 281. If the tax is collected on behalf of the Government, then the amount can be paid without the income tax challan.
Electronic TCS (e-TCS)
E-TCS is the filing of TCS returns using electronic media. It is mandatory for corporate and government collectors to furnish TCS returns in electronic form, from financial year 2004-2005. Collectors (other than government and corporates) may file TCS returns in electronic or physical form.
NSDL collects the e-TCS returns from the Collectors on behalf of the Income Tax Department.
TCS returns on computer media for e-TCS
TCS returns filed using computers should be in TCS specific form formats and must contain all the information, details and particulars specified in such forms.
Computer media specifications are as follows (any of these):
• CD ROM of capacity 650 MB or more
• 4mm 2GB/4GB (90M/120M) DAT Cartridge
• 3.5 Inches, 1.44 MB floppy diskette.
The returns must be accompanied by Form No.27B and verified.
Filing of TCS Returns
TCS returns are to be filed quarterly, in addition to annual returns.
Form Periodicity Due Date
Form 27EQ Quarterly On or before 15th July, 15th October, 15th January and 30th April.
Form 27 E Annual On or before 30th June, following the financial year.
Form 27B Annual / Quarterly Filed in physical form with each return i.e., Form 27E and Form 27EQ.
TCS in Tally
Tally supports TCS and is a simple and easy-to-use feature. The complexities of TCS are handled by Tally making it easier for you to maintain records and file TCS returns.
Tally calculates TCS in transactions, where ever applicable. Tally also generates Print and File TCS forms and reports (Statutory and MIS).
Features of TCS in Tally
TCS in Tally has the following features:
• Simple and easy-to-use.
• Maintain TCS records.
• Lower/No Collection of TCS and Exemption Limit on Surcharge.
• TCS Helper facility to pay TCS.
• Print TCS Challan from Tally.
• Generate TCS returns automatically from Tally and file.
• E-TCS (electronic format) filing facility provided in Tally.
• Generate Statutory Reports from Tally: Form 27D, E-TCS filing and Form 27B.
• TCS Reconciliation Reports: TCS Challan Reconciliation and Form 27D Reconciliation
• TCS Display Reports:
o Statutory Masters: Collectee Types and TCS Nature of Goods
o MIS Reports: TCS Payables and TCS Ledger Outstandings
Enabling TCS in Tally
To enable TCS in Tally:
1. Go to Gateway of Tally
2. Press F11 or click F11: Features > Statutory & Taxation to display the Company Operations Alteration screen.
3. Enter Yes in Enable TCS and Set/Alter TCS Details
4. Enter the Company TCS Collector Details.
5. Enter the Tax Assessment Number. The Tax Assessment Number (TAN) is a 10-digit alphanumeric number, issued by the Income Tax Department (ITD) to the collectors.
6. Enter the Income Tax Circle/Ward (TCS). This is issued by the Income Tax Department
7. Select the Collector Type from the List of Company Type.
8. Enter the Name of person responsible for filing the TCS returns.
9. Enter the Designation of the person responsible for filing of the TCS returns.
10. Press Enter and Accept to save.
Introduction
TCS is the Tax Collected at Source by the seller (collector) from the buyer/ lessee (collectee/ payee). The goods are as specified under section 206C of the Income Tax Act, 1961.
If the purchase value of goods is X, the amount payable by the buyer is X+Y, where Y is the value of tax at source. The seller deposits Y (tax collected at source) at any designated branch of banks authorized to receive the payment.
The seller, lessor or licensor, is responsible for the collection of tax from the buyer, lessee or licensee. The tax is collected for sale of goods, on transactions, receipt of amount from the buyer in cash or issue of cheque, draft or any other mode, whichever is earlier.
Classification of Seller for TCS
Under TCS, a seller is defined as any of the following:
o Central Government
o State Government
o Any Local Authority
o Any Statutory Corporation or Authority
o Any Company
o Any Partnership Firm
o Any Co-operative Society
o Any individual/HUF whose total sales or gross receipts exceed the prescribed monetary limits as specified under section 44AB during the previous year
Classification of Buyer for TCS
A buyer is classified as a person who obtains goods or the right to receive goods in any sale, auction, tender or any other mode. The following are not included:
o Public Sector Companies
o Central Government
o State Government
o Embassy of High Commission, Consulate and other Trade Representation of a Foreign State
o Any Club, such as social clubs, sports clubs and the like
Goods and Transactions classified under TCS
Goods and transactions classified under TCS are listed below:
o Alcoholic liquor for human consumption including Indian Made Foreign Liquor (IMFL)
o Tendu leaves
o Timber obtained under a forest lease
o Timber obtained by any mode other than under a forest lease
o Any other forest produce not being Timber or Tendu
o Scrap (Scrap means waste and scrap from the manufacture or mechanical working of materials which is usable as such because of breakage, cutting up, wear and tear and other reasons)
o Licensing or leasing of Parking Lot, Toll Plaza
o Mining and quarrying
Certificate of TCS
The certificate of collection of tax at source has to be submitted in Form No-27D by persons collecting tax at source within a week from the last day of the month in which the tax was collected.
If there is more than one certificate to be issued to a buyer for tax collected at source with respect to the period ending September 30 and March 31 in the financial year, then the person collecting the tax on request from the buyer can issue a consolidated certificate within one month from the end of such period.
If an issued TCS certificate is lost, the person collecting tax at source may issue a duplicate certificate on plain paper, with necessary details as contained in Form-27D.
The Assessing Officer (AO), before giving credit for the tax collected at source on the basis of the duplicate certificate, has to get the payment certified and obtain an Indemnity Bond from the assessee.
TCS Exemptions
TCS can be totally exempted or fixed at a lower rate under some circumstances.
Total Exemption: No TCS Collection
A declaration by the buyer in Form Number 27C (in duplicate) has to be made for total exemption. The declaration is if the goods listed are to be used for the purpose of manufacturing or processing and not trading. A copy of the declaration has to be given to the person collecting tax.
The person collecting this declaration form has to submit the copy to the authorities concerned on or before the seventh day of the following month.
Lower Rate of TCS
The buyer (Collectee) can apply to the Assessing Officer (AO) for a lower rate, using Form No.13, subject to the condition that the AO is convinced that the total income of the buyer (Collectee) justifies the lower rate. The AO may issue a certificate, specifying the rate of collection.
Payment of TCS to the Government
The tax collected is to be paid to the Central Government within one week of the last day of the month in which the tax was collected. This payment is made in any branch of Reserve Bank of India (RBI), State Bank of India (SBI), or any other authorised bank. The payment is made accompanied by income tax challan 281. If the tax is collected on behalf of the Government, then the amount can be paid without the income tax challan.
Electronic TCS (e-TCS)
E-TCS is the filing of TCS returns using electronic media. It is mandatory for corporate and government collectors to furnish TCS returns in electronic form, from financial year 2004-2005. Collectors (other than government and corporates) may file TCS returns in electronic or physical form.
NSDL collects the e-TCS returns from the Collectors on behalf of the Income Tax Department.
TCS returns on computer media for e-TCS
TCS returns filed using computers should be in TCS specific form formats and must contain all the information, details and particulars specified in such forms.
Computer media specifications are as follows (any of these):
• CD ROM of capacity 650 MB or more
• 4mm 2GB/4GB (90M/120M) DAT Cartridge
• 3.5 Inches, 1.44 MB floppy diskette.
The returns must be accompanied by Form No.27B and verified.
Filing of TCS Returns
TCS returns are to be filed quarterly, in addition to annual returns.
Form Periodicity Due Date
Form 27EQ Quarterly On or before 15th July, 15th October, 15th January and 30th April.
Form 27 E Annual On or before 30th June, following the financial year.
Form 27B Annual / Quarterly Filed in physical form with each return i.e., Form 27E and Form 27EQ.
TCS in Tally
Tally supports TCS and is a simple and easy-to-use feature. The complexities of TCS are handled by Tally making it easier for you to maintain records and file TCS returns.
Tally calculates TCS in transactions, where ever applicable. Tally also generates Print and File TCS forms and reports (Statutory and MIS).
Features of TCS in Tally
TCS in Tally has the following features:
• Simple and easy-to-use.
• Maintain TCS records.
• Lower/No Collection of TCS and Exemption Limit on Surcharge.
• TCS Helper facility to pay TCS.
• Print TCS Challan from Tally.
• Generate TCS returns automatically from Tally and file.
• E-TCS (electronic format) filing facility provided in Tally.
• Generate Statutory Reports from Tally: Form 27D, E-TCS filing and Form 27B.
• TCS Reconciliation Reports: TCS Challan Reconciliation and Form 27D Reconciliation
• TCS Display Reports:
o Statutory Masters: Collectee Types and TCS Nature of Goods
o MIS Reports: TCS Payables and TCS Ledger Outstandings
Enabling TCS in Tally
To enable TCS in Tally:
1. Go to Gateway of Tally
2. Press F11 or click F11: Features > Statutory & Taxation to display the Company Operations Alteration screen.
3. Enter Yes in Enable TCS and Set/Alter TCS Details
4. Enter the Company TCS Collector Details.
5. Enter the Tax Assessment Number. The Tax Assessment Number (TAN) is a 10-digit alphanumeric number, issued by the Income Tax Department (ITD) to the collectors.
6. Enter the Income Tax Circle/Ward (TCS). This is issued by the Income Tax Department
7. Select the Collector Type from the List of Company Type.
8. Enter the Name of person responsible for filing the TCS returns.
9. Enter the Designation of the person responsible for filing of the TCS returns.
10. Press Enter and Accept to save.
INVENTORY VOUCHER
INVENTORY VOUCHER
Purchase order :
It is the use for purchasing in the order way. In this case two things:
1. Order number (Filling order number)
2. Due date
Sales order:
It is the use for sales in the order way. In this case two things:
1. Order number (Filling order number)
2. Due date
Receipt note voucher:
In this case you given order for goods and these goods receipt by challan, than use these voucher. In this case two things remember:
1. Tracking number (tracking number is challan
Number)
2. Order number (that time to select order number)
Delivery note voucher:
In this case you take a order for goods and these goods deliver by challan, than use these voucher. In this case two things remember:
1. Tracking number (tracking number is challan
Number)
2. Order number (that time to select order number)
Rejection out:
In this case you receipt an challan (receipt note) and you return some goods (defective) than you make rejection out voucher. In this case one thing remember
1. Tracking number (these time to select tracking number not make a number)
Rejection in:
In this case you deliver an challan (Delivery note) and return some goods (defective) than we make rejection in voucher. In this case one thing remember
1. Tracking number (these time to select tracking number not make a number)
Stock journal voucher:
This voucher use for inter godown transfer that means transfer to one godown to another godown.
Physical stock voucher:
This voucher use for physical stock verification.
Purchase order :
It is the use for purchasing in the order way. In this case two things:
1. Order number (Filling order number)
2. Due date
Sales order:
It is the use for sales in the order way. In this case two things:
1. Order number (Filling order number)
2. Due date
Receipt note voucher:
In this case you given order for goods and these goods receipt by challan, than use these voucher. In this case two things remember:
1. Tracking number (tracking number is challan
Number)
2. Order number (that time to select order number)
Delivery note voucher:
In this case you take a order for goods and these goods deliver by challan, than use these voucher. In this case two things remember:
1. Tracking number (tracking number is challan
Number)
2. Order number (that time to select order number)
Rejection out:
In this case you receipt an challan (receipt note) and you return some goods (defective) than you make rejection out voucher. In this case one thing remember
1. Tracking number (these time to select tracking number not make a number)
Rejection in:
In this case you deliver an challan (Delivery note) and return some goods (defective) than we make rejection in voucher. In this case one thing remember
1. Tracking number (these time to select tracking number not make a number)
Stock journal voucher:
This voucher use for inter godown transfer that means transfer to one godown to another godown.
Physical stock voucher:
This voucher use for physical stock verification.
Friday, March 5, 2010
PAYROLL
Introduction
Tally Payroll is integrated with Accounting to give the user the benefits of simplified Payroll processing and accounting.
Tally Payroll enables users to set up and implement salary structures, ranging from simple to complex, as per the organization’s requirements. You can also align and automate payroll processes and directly integrate them with main stream accounting applications. Payroll data can be viewed as part of the existing and configurable cost centre reports for business analysis.
Tally Payroll also supports configurable formats for pay slip printing; flexible salary/wage, attendance, leave and overtime registers; gratuity and expat report
To enable Payroll in Tally
Go to Gateway of Tally > F11: Features> Accounting Features
• Set Maintain Payroll to Yes
• You can set More than ONE Payroll / Cost Category to Yes if you wish to process payroll for multi group of Employees.
Four Easy Steps to Generate a Pay slip
The new enhanced Payroll in Tally requires minimal effort for accurate processing. Setting up Pay Heads, Employee Group, Employees, Salary Details and Attendance/Production Type is now a simple process with Tally’s four easy steps to generate a payslip.
Step 1
Create Pay Heads
The components of structured salary are created under Pay Head
Create the salary structure components in pay head. The Pay head creation in tally is very user friendly. Tally allows creating any complex type of pay head.
Step 2
Create Employee Masters
Create an Employee master. Enter the requisite Employee Details & Employee group by grouping employees under the function they perform; their department or designation.
Step 3
Create Salary Details
Create the applicable Salary Details for both Employee Groups as well as Individual Employees with earnings, deductions and basis of computation.
Step 4
Process Payroll and Generate the Payslip
Pass a Payroll voucher to enter all Earnings and Deductions in payroll transactions that are paid along with the Salary Payslip for all employees
Generate the Payslip that provides employee as well as attendance details, itemizes each component of the employee’s earnings and deductions, and displays the net amount paid to him for a given pay period. It also provides information to the employee as to how the net amount was arrived at.
Tally Payroll is integrated with Accounting to give the user the benefits of simplified Payroll processing and accounting.
Tally Payroll enables users to set up and implement salary structures, ranging from simple to complex, as per the organization’s requirements. You can also align and automate payroll processes and directly integrate them with main stream accounting applications. Payroll data can be viewed as part of the existing and configurable cost centre reports for business analysis.
Tally Payroll also supports configurable formats for pay slip printing; flexible salary/wage, attendance, leave and overtime registers; gratuity and expat report
To enable Payroll in Tally
Go to Gateway of Tally > F11: Features> Accounting Features
• Set Maintain Payroll to Yes
• You can set More than ONE Payroll / Cost Category to Yes if you wish to process payroll for multi group of Employees.
Four Easy Steps to Generate a Pay slip
The new enhanced Payroll in Tally requires minimal effort for accurate processing. Setting up Pay Heads, Employee Group, Employees, Salary Details and Attendance/Production Type is now a simple process with Tally’s four easy steps to generate a payslip.
Step 1
Create Pay Heads
The components of structured salary are created under Pay Head
Create the salary structure components in pay head. The Pay head creation in tally is very user friendly. Tally allows creating any complex type of pay head.
Step 2
Create Employee Masters
Create an Employee master. Enter the requisite Employee Details & Employee group by grouping employees under the function they perform; their department or designation.
Step 3
Create Salary Details
Create the applicable Salary Details for both Employee Groups as well as Individual Employees with earnings, deductions and basis of computation.
Step 4
Process Payroll and Generate the Payslip
Pass a Payroll voucher to enter all Earnings and Deductions in payroll transactions that are paid along with the Salary Payslip for all employees
Generate the Payslip that provides employee as well as attendance details, itemizes each component of the employee’s earnings and deductions, and displays the net amount paid to him for a given pay period. It also provides information to the employee as to how the net amount was arrived at.
Tax deducted at Source
TDS means Tax Deducted at Source. The concept of TDS was introduced in the Income Tax Act, 1961, with the objective of deducting the tax on an income, at the source of income. It is one of the methods of collecting Income Tax, which ensures regular flow of revenue to the Government.
TDS Process
1. Deductee (Seller) provides Services and Bill to the Deductor (Buyer).
2. Deductor makes the payment after deducting TDS.
3. Deductor remits the TDS amount into Bank (Treasury).
4. Bank (Treasury) remit the amount to the Government Account.
5. Deductor Issues Form 16A to Deductee for the TDS amount deducted.
6. Deductor Files the e-TDS to NSDL.
7. NSDL uploads the e-TDS information to Income Tax Department.
8. Deductee Files the Return with Form 16A to Income tax Department.
Issue of TDS Certificate
TDS certificate is a proof that deductor has deducted the tax and paid the same to the government. This proof is essential to the deductee to claim the credit of tax in his Income Tax returns.
U/s 203 of Income Tax Act, any person deducting the tax as per the provisions of:
• Section 192 (Salary) shall furnish a certificate of Deduction of tax in Form 16 or Form 16AA within one month from the close of Financial year in which such deduction was made.
Example: For the Financial Year 2007-2008, the TDS certificate must be issued on or before 30th April, 2008
• Section 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194-I, 194J, 194K, 194LA, 195, 196A, 196B, 196C and 196D shall furnish a certificate of Deduction of tax in Form 16A with one month from the end of the month during which the credit has been given or the payment has been made, as the case may be.
• In case of a deductee to whom more than one TDS certificate was issued for the deductions made during the year, may on request from such deductee, a consolidated certificate in Form 16A may be issued within a period of one month from the close of such financial year.
Filing of e-TDS Returns
e-TDS Returns
The Income Tax department has now notified ‘Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003’. It is applicable to all deductors furnishing their TDS return in electronic form. As per this scheme,
• It is mandatory for corporate deductors to furnish their TDS returns in electronic form (e-TDS return) with effect from June 1, 2003.
• For government deductors it is mandatory to furnish their TDS returns in electronic form (e-TDS return) from financial year 2004-2005 onwards.
• Deductors (other than government and corporates’ ) may file TDS return in electronic or physical form.
Deductors furnishing TDS returns in electronic form (e-TDS) have to furnish Form 27A. Form 27A is a control chart to be furnished in physical form along with CD/ Floppy containing the e-TDS returns. Form No 27A is required to be furnished separately for each TDS return.
Form 27A is a summary of e-TDS returns which contains control totals of ‘Amount paid‘ and ‘Income tax deducted at source’. The control totals mentioned on Form 27A should match with the corresponding control totals in e-TDS returns.
Returns and Timelines
The following Returns are required to be filed under TDS:
Financial Year Form No. Particulars Periodicity
2008-09 Form 26 Annual return of deduction of tax in respect of payments other than salary Annual
Form 27 Annual return of deduction of tax in respect of payments other than salary made to Non-residents Annual
Form 27A Physical control charts containing control totals mentioned in TDS returns furnished electronically. Form 27A in physical form to be submitted along with e-TDS annual return forms. With each e-TDS returns Form 26 and/ or Form 27. With each e-TDS returns Form 26 and/ or Form 27.
2008-09 Form 26Q Quarterly return of deduction of tax in respect of payments other than salary Quarterly
Form 27Q
Quarterly return of deduction of tax in respect of payments other than salary made to Non-residents. Quarterly
Form 27A Physical control charts containing control totals mentioned in TDS returns furnished electronically. Form 27A in physical form to be submitted along with e-TDS quarterly return forms With each e-TDS returns Form 26Q and/or Form 27Q.
Changes in Finance Act 2009
As per Finance Act, for the Financial Year 2009-10 surcharge or Cess is not applicable for TDS with effective from 1st April, 2009. For tax deduction only the specified TDS rates are considered.
Changes in the Surcharge and Cess are applicable as follows.
Nature of payment Whether surcharge is applicable whether education cess @ 2% and secondary and higher education cess @ 1% is applicable
Salary to a resident or non resident No Yes
Payment other than salary to a resident No No
Payment other than salary to a non-resident not being foreign company No Yes
Payment other than salary to a foreign company (payment or credit subject to TDS does not exceed Rs.1 Crore) No Yes
Payment other than salary to a foreign company (payment or credit subject to TDS exceeds Rs.1 Crore) Yes @ 2.5% of TDS Yes
TDS in Tally.ERP 9
TDS (Tax Deducted at Source) in Tally.ERP 9 provides an easy-to-use and flexible interface. It helps you to handle intricate cases and calculate the tax payable to the Income Tax Department.
Tally.ERP 9 calculates the tax of all parties/ suppliers where TDS deduction is mandatory. It calculates the TDS automatically and prints Form16A certificates, Forms 26Q, 27Q, 26, 27 and 27A (Cover Note) for Quarterly/ Annual Returns as per statutory requirement.
It allows the user to view and print various TDS reports, Challans and TDS Outstanding statements.
Features of TDS in Tally.ERP 9
The TDS functionality in Tally.ERP 9 supports the following features:
1. Simple and user-friendly.
2. Quick and easy to set up and use.
3. Accounting for tax payment of bills.
4. Flexibility for assisted calculation of TDS.
5. Complete tracking of each transaction from deduction to payment.
6. Challan management and printing for prompt and accurate filing of tax.
7. The Auto allocation feature prevents error-prone data entry and helps track the transactions faster.
8. Form 16A management:
9. Can be printed for a transaction
10. Can be printed for a period
11. Can be printed yearly
9. Allows multi-party printing.
10. Exporting of data in NSDL compliant TDS file format.
11. Electronic format (e-TDS return) with Form 26Q, 27Q, 26 and Form 27 and which will be validated by the utility, provided by the government.
12. Generates Form 16A, TDS Challan, TDS Computation and TDS Payable reports.
TDS Process
1. Deductee (Seller) provides Services and Bill to the Deductor (Buyer).
2. Deductor makes the payment after deducting TDS.
3. Deductor remits the TDS amount into Bank (Treasury).
4. Bank (Treasury) remit the amount to the Government Account.
5. Deductor Issues Form 16A to Deductee for the TDS amount deducted.
6. Deductor Files the e-TDS to NSDL.
7. NSDL uploads the e-TDS information to Income Tax Department.
8. Deductee Files the Return with Form 16A to Income tax Department.
Issue of TDS Certificate
TDS certificate is a proof that deductor has deducted the tax and paid the same to the government. This proof is essential to the deductee to claim the credit of tax in his Income Tax returns.
U/s 203 of Income Tax Act, any person deducting the tax as per the provisions of:
• Section 192 (Salary) shall furnish a certificate of Deduction of tax in Form 16 or Form 16AA within one month from the close of Financial year in which such deduction was made.
Example: For the Financial Year 2007-2008, the TDS certificate must be issued on or before 30th April, 2008
• Section 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194-I, 194J, 194K, 194LA, 195, 196A, 196B, 196C and 196D shall furnish a certificate of Deduction of tax in Form 16A with one month from the end of the month during which the credit has been given or the payment has been made, as the case may be.
• In case of a deductee to whom more than one TDS certificate was issued for the deductions made during the year, may on request from such deductee, a consolidated certificate in Form 16A may be issued within a period of one month from the close of such financial year.
Filing of e-TDS Returns
e-TDS Returns
The Income Tax department has now notified ‘Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003’. It is applicable to all deductors furnishing their TDS return in electronic form. As per this scheme,
• It is mandatory for corporate deductors to furnish their TDS returns in electronic form (e-TDS return) with effect from June 1, 2003.
• For government deductors it is mandatory to furnish their TDS returns in electronic form (e-TDS return) from financial year 2004-2005 onwards.
• Deductors (other than government and corporates’ ) may file TDS return in electronic or physical form.
Deductors furnishing TDS returns in electronic form (e-TDS) have to furnish Form 27A. Form 27A is a control chart to be furnished in physical form along with CD/ Floppy containing the e-TDS returns. Form No 27A is required to be furnished separately for each TDS return.
Form 27A is a summary of e-TDS returns which contains control totals of ‘Amount paid‘ and ‘Income tax deducted at source’. The control totals mentioned on Form 27A should match with the corresponding control totals in e-TDS returns.
Returns and Timelines
The following Returns are required to be filed under TDS:
Financial Year Form No. Particulars Periodicity
2008-09 Form 26 Annual return of deduction of tax in respect of payments other than salary Annual
Form 27 Annual return of deduction of tax in respect of payments other than salary made to Non-residents Annual
Form 27A Physical control charts containing control totals mentioned in TDS returns furnished electronically. Form 27A in physical form to be submitted along with e-TDS annual return forms. With each e-TDS returns Form 26 and/ or Form 27. With each e-TDS returns Form 26 and/ or Form 27.
2008-09 Form 26Q Quarterly return of deduction of tax in respect of payments other than salary Quarterly
Form 27Q
Quarterly return of deduction of tax in respect of payments other than salary made to Non-residents. Quarterly
Form 27A Physical control charts containing control totals mentioned in TDS returns furnished electronically. Form 27A in physical form to be submitted along with e-TDS quarterly return forms With each e-TDS returns Form 26Q and/or Form 27Q.
Changes in Finance Act 2009
As per Finance Act, for the Financial Year 2009-10 surcharge or Cess is not applicable for TDS with effective from 1st April, 2009. For tax deduction only the specified TDS rates are considered.
Changes in the Surcharge and Cess are applicable as follows.
Nature of payment Whether surcharge is applicable whether education cess @ 2% and secondary and higher education cess @ 1% is applicable
Salary to a resident or non resident No Yes
Payment other than salary to a resident No No
Payment other than salary to a non-resident not being foreign company No Yes
Payment other than salary to a foreign company (payment or credit subject to TDS does not exceed Rs.1 Crore) No Yes
Payment other than salary to a foreign company (payment or credit subject to TDS exceeds Rs.1 Crore) Yes @ 2.5% of TDS Yes
TDS in Tally.ERP 9
TDS (Tax Deducted at Source) in Tally.ERP 9 provides an easy-to-use and flexible interface. It helps you to handle intricate cases and calculate the tax payable to the Income Tax Department.
Tally.ERP 9 calculates the tax of all parties/ suppliers where TDS deduction is mandatory. It calculates the TDS automatically and prints Form16A certificates, Forms 26Q, 27Q, 26, 27 and 27A (Cover Note) for Quarterly/ Annual Returns as per statutory requirement.
It allows the user to view and print various TDS reports, Challans and TDS Outstanding statements.
Features of TDS in Tally.ERP 9
The TDS functionality in Tally.ERP 9 supports the following features:
1. Simple and user-friendly.
2. Quick and easy to set up and use.
3. Accounting for tax payment of bills.
4. Flexibility for assisted calculation of TDS.
5. Complete tracking of each transaction from deduction to payment.
6. Challan management and printing for prompt and accurate filing of tax.
7. The Auto allocation feature prevents error-prone data entry and helps track the transactions faster.
8. Form 16A management:
9. Can be printed for a transaction
10. Can be printed for a period
11. Can be printed yearly
9. Allows multi-party printing.
10. Exporting of data in NSDL compliant TDS file format.
11. Electronic format (e-TDS return) with Form 26Q, 27Q, 26 and Form 27 and which will be validated by the utility, provided by the government.
12. Generates Form 16A, TDS Challan, TDS Computation and TDS Payable reports.
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